Backbench MP Frank Dobson told the crowd it was "shameful" a Labour government was creating a "market" for university places.

"This idea is wrong and unfair. It's wrong in principle and wrong in practice," he said.

Sally Hunt, of the AUT, said students should turn their support for the demonstration into a "strong political campaign that would make it absolutely untenable for any Labour MP to vote in favour of top up fees".

But speaking before the protest, higher education minister Alan Johnson said the campaigners had "no hope" of changing the government's mind.

"The NUS has always had a dogmatic approach to graduates making any contribution," he told BBC News 24.

He said the policy was the fairest way to generate funds for investment and expansion in higher education, which would be "free at the point of access and fair at the point of repayment" by 2006.

NUS President Mandy Telford said the fight would go on

"The taxpayer is putting in a huge contribution. We say taxpayers should pay the lion's share, but graduates should make a contribution."

Ms Telford told an earlier press conference the government had to listen, or risk doing "enormous damage both to itself and to higher education".

Ms Telford said with 140 Labour MPs on their side, the rally was only the beginning of a "continued assault" on the government's policy.

She also warned the fees would create a "two-tier system" of education.

Currently, most undergraduates in England, Wales and Northern Ireland pay up to £1,125 a year in tuition fees.

Under government plans universities will be able to charge "differential" rates of up to £3,000 from 2006 to help fund its target of getting "towards 50%" of young people into higher education by 2010.

The Association of Colleges said it supported the higher fees, but argued that these should be paid by all students, rather than having a sliding scale depending on course and institution.